HOUSTON — Locally based investment firm Interra Capital Group has acquired the 600,000-square-foot historic Esperson complex in downtown Houston. Comprising two structures that are known as the Niels and Mellie Esperson Buildings, the complex is home to a mix of commercial users. The buildings were originally constructed in 1927 and 1941 to pay homage to real estate and oil magnate Niels Esperson and reflect the importance of those industries in the growth of the local economy during that time. Cameron Management manages the property, which Interra acquired by foreclosure through a note purchased from MetLife Investment Management earlier this year. Details on Interra’s plan to revitalize the property were not disclosed.
EL PASO, TEXAS — Los Angeles-based investment firm BH Properties has purchased a two-building, 203,499-square-foot industrial property located at 12100-12105 Esther Lama Drive in El Paso. The buildings are situated on a 17-acre site adjacent to I-10 on the city’s east side and were originally constructed in 1986 to house the manufacturing and storage operations of the Tony Lama boot company. Brett Preston and David Hingst of Cushman & Wakefield/PIRES International represented the undisclosed seller in the transaction. The sales price was also not disclosed.
FRISCO, TEXAS — Marcus & Millichap has brokered the sale of a 9,291-square-foot retail strip center in Frisco. The property was fully leased at the time of sale to five tenants: Active Dental, Stonebrook Eyecare & Eyewear, ATI Physical Therapy, Momo’s Coffeehouse and Jamba Juice. William Kim of Marcus & Millichap represented the buyer, JT Arlington, in the transaction. Duke Dennis of Marcus & Millichap Capital Corp. (MMCC) arranged $2.8 million in acquisition financing through a local credit union for the deal. The nonrecourse, five-year loan carried a fixed interest rate of 7 percent.
FATE, TEXAS — Tampa-based investment firm American Landmark has purchased Prose Eastgate, a 366-unit apartment community in Fate, a northeastern suburb of Dallas. Built in 2023, the property offers one- and two-bedroom units that are furnished with stainless steel appliances, granite countertops and walk-in closets. Amenities include a pool, outdoor grilling and dining stations, resident lounge, entertainment kitchen, a fitness center, business center, dog park and package lockers. The seller and sales price were not disclosed, but Prose is the workforce housing brand of Alliance Residential. American Landmark has since rebranded the property as Jameson Apartments.
DALLAS — A partnership between Waterford Property Co., The Vistria Group and the City of Dallas Housing Finance Corp. has acquired Axis Kessler Park, 299-unit apartment community in West Dallas. The sales price was $67 million. The new ownership plans to convert the property to workforce housing, with rents for all but 10 percent of the residences to be restricted to households earning between 60 and 140 percent of the area median income. Units come in one-, two- and three-bedroom floor plans, and amenities include a pool, clubhouse, fitness center, business center and a dog park. John Makus of CBRE represented the undisclosed seller in the transaction. Walker & Dunlop originated an undisclosed amount of Freddie Mac acquisition financing for the deal.
TEXARKANA, TEXAS — Marcus & Millichap has brokered the sale of a portfolio of six multifamily properties totaling 231 units in Texarkana, located near the confluence of the Texas, Arkansas and Louisiana borders. The properties — Isabella Acres, Hidden Brook, Pecan Haven, Park Villa, Jasmine and Gardens at Wake Village — include build-to-rent communities and traditional multifamily complexes. Matt Aslan of Marcus & Millichap represented the undisclosed seller in the transaction. The buyer, which also requested anonymity, assumed the seller’s loan, which carries a 3.48 percent fixed interest rate with four years of term remaining.
SAN ANTONIO — U.S. Foods has signed a lease to occupy space at Riggy’s Foster Ridge, a 10-acre industrial outdoor storage (IOS) facility in San Antonio. The newly developed facility is located at 6600 Lancer Blvd. on the city’s east side and features a seven-acre truck parking and trailer storage area with 140 demarcated tractor trailer spaces, as well as a 2,000-square-foot common area office and lounge. Ty Bragg of Cavender & Hill represented the landlord, Texas-based real estate and logistics firm DryPort Capital, in the lease negotiations. Rob Burlingame of CBRE represented the tenant.
IRVING, TEXAS — FOX-owned local television station KDFW-TV/KDFI-TV will open a new 50,000-square-foot studio in Irving via construction of a two-story building at 2203 W. Royal Lane in the Las Colinas district. The entire network staff of about 170 people will relocate to the new studio, which will feature a newsroom, offices, technical suites, podcasting studios and other content-creation facilities. Construction is scheduled to begin in the fourth quarter, and the facility is expected to be operational by 2026.
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Multifamily Markets See Silver Lining Despite Economic Headwinds
Like other property sectors, rental housing assets have experienced big swings in fortunes over the past few years. Historically high rent growth during the pandemic came to a halt amid new supply in many markets. And the end of cheap debt has stymied investment sales and is stressing investors who paid handsomely for apartments using short-term financing. But the situation could be worse. Housing remains in high demand, and despite higher mortgage rates and a collapse in home sales, a severe lack of inventory on the market continues to prop up home values and price out would-be buyers. In May, home prices across the country increased 5.9 percent over the previous year, according to the latest S&P CoreLogic Case Shiller U.S. National Home Price NSA Index. Rental housing owners and operators are the obvious beneficiary of those challenges, says Ivy Zelman, executive vice president and co-founder of Zelman & Associates, a Walker & Dunlop company that provides housing research, analysis and consulting. Move-outs attributed to home purchases clearly illustrate the trend. An apartment and single-family rental operator in Phoenix recently told Zelman that such move-out activity has dropped to about 13 percent from an historical average of 30 percent, she …
OKLAHOMA CITY — Dallas-based Mintwood Real Estate has begun leasing The Residences at OAK, a 320-unit apartment community in Oklahoma City. The site is situated within OAK, a 20-acre mixed-use project by Veritas Development that will feature 135,000 square feet of retail space, a 132-key boutique hotel by Gatehouse Capital and a 7,000-square-foot green space as part of its initial phase of development. The Residences at OAK features studio, one-, two- and three-bedroom floor plans. Amenities include a fitness center, children’s playroom, pool and elevated courtyards. The first move-ins are slated for late August. Rents start at about $1,500 per month for a studio apartment.